ESMA Draft RTS on EMIR 3 Clearing Thresholds

ESMA has published draft Regulatory Technical Standards (RTS) that set out new and revised clearing thresholds (CTs) under EMIR 3. The proposed thresholds aim to ensure continuity in the coverage of systemic risk in over-the-counter (OTC) derivative markets without adding unnecessary complexity or compliance burdens. Key changes include retaining five CT categories, clarifying the timing for position calculations, and enhancing the stability of the CT review mechanism. ESMA also suggests increasing thresholds for commodity, interest rate, and credit derivatives, reflecting market factors.

Entities active in OTC derivative markets that exceed one or more CTs are subject to additional requirements, notably the clearing obligation. These draft RTS have been submitted to the European Commission for endorsement and subsequent adoption. Market participants should review the proposed thresholds and consider their implications for their OTC derivative positions and clearing obligations.